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A strange opportunity for me. - a little help please.

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Hello all. I decided to visit here to see if people would have any suggestions on the situation I find myself in.

I'd like to buy a house, so obviously I'm needing a mortgage. Here's the wierd bit. I was over payed last month by a lot, but the company is not allowed to take back all the money in one go. It can only take it at a small amount a month (around £300 - interest free), and it's going to take them about 40 months to claim it all back. If I wanted I could get a bit more money through a deal (interest free) and pay that back over the same amount of time. It would work out about £500 a month.

So, I could have roughly £20,000 straight away to start me off, but paying £500 to the company as well as paying a mortgage to the bank would be difficult. I was wondering if anyone knew of a way that I could get this money to work to my advantage with regards buying a house. Is there some way I could pay a low amount to the mortgage lender for the time I'm paying back the company? Would this work to my advantage, or would it turn around and bite me? Or am I better off just locking it away in savings accounts?

Any help would be greatly appreciated. By the way I am off to have a chat with the bank next Monday to see if they have any ideas, but it never hurts to ask around.
Cheers.

Comments

  • beingjdc
    beingjdc Posts: 1,680 Forumite
    The best bet to my mind would be an offset mortgage where you have access to the money you've been overpaid - your LTV is 90% say, but you're only actually borrowing 75% to start with, so you don't have to make repayments if you're struggling, as you move that money in on day 1.
    Hurrah, now I have more thankings than postings, cheers everyone!
  • MortgageMamma
    MortgageMamma Posts: 6,686 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    There are options available to you. You could consider an interest only mortgage for a while, of a stepped mortgage on interest only - this is where you start on a low interest rate and it progressively gets higher over a number of years.

    You really need to speak to a proper mortgage broker with access to all the mortgage lenders on the UK market rather than someone at a bank who only has a handful of products to offer you.
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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